Royal Mail – 7% increase in new business formation in lockdown

Royal Mail has shown that the highest rate of new businesses founded in 2020 in the UK was in London, where eight of the ten postcodes to see the highest number of new businesses are.

Another measure of new business founding was the number of new businesses per head of a regional population. London again came top.

Urban areas saw more new business creation than rural too. Around 11% of new incorporations took place in rural postcodes of England and Wales. Scotland was a little different with 15% of businesses being formed in rural areas.

Lockdown had an effect on business creation too, with a 7% increase in new business formation by comparison to the same period in 2019. A large number of these were e—commerce businesses as the sector has boomed.

Nick Landon, Chief Commercial Officer at Royal Mail, said: “We have seen an increase in new business creation despite the challenges of lockdown. It is encouraging to see that new business creation is taking place in both urban and rural areas. We are proud to offer the Universal Service which ensures that all areas of the UK get the same service for the same one-price-goes-anywhere.

“The ecommerce sector has experienced a real boom and at Royal Mail we understand the importance of the postal service in keeping the UK connected at this time. In doing so, we also take the health and safety of our colleagues, our customers and the local communities in which we operate very seriously.”

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